Upconversion nanoparticles were prepared by laser ablation in liquid, and the potential use of the nanoparticles for cancer treatment was investigated. A Nd:YAG/SHG laser (532 nm, 13 ns, 10 Hz) was used for ablation, and the cancer treatment studied was photodynamic therapy (PDT). Morphology and crystallinity of prepared nanoparticles were examined by transmission electron microscopy and X-ray diffraction. Red and green emissions resulting from near-infrared excitation were observed by a fluorescence spectrophotometer. Generation of singlet oxygen was confirmed by a photochemical method using 1,3-diphenylisobenzofuran (DPBF). In vitro experiments using cultivated cancer cells were conducted to investigate PDT effects. Uptake of the photosensitizer by cancer cells and cytotoxicities of cancer cells were also examined. We conclude that the combination of PDT and highly crystalline nanoparticles, which were prepared by laser ablation in liquid, is an effective cancer treatment.